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The Relationship between Media Advertising and Selling Ratios: A Review

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 Journal of Modern Marketing Research Vol.2 No.1, September 2013, 86-97

The Relationship between Media Article Info

Advertising and Selling Ratios:
A Review Paper Received: 13th May 2013
Accepted: 27th June 2013
Kiandokht Hadadi, Mahmoud Khalid Almsafir Published online: 1st September 2013
College of Graduate Studies, University Tenaga Nasional,
Malaysia
Jalan IKRAM-UNITEN, 43000 Kajang, Selangor
kiandokht.hadadi@yahoo.com, Mahmoud@uniten.edu.my

ISSN: 2231-9131 © 2012 Design for Scientific Renaissance All rights reserved

ABSTRACT
Advertising is one of the marketing strategies to promote products to consumers. Many advertising
are available offering interesting advertising packages. Media plays an important role in displaying
the good and the bad to the audience. The emergence of new technologies and the demand from
audience has internationalized local media. This paper focuses on the impact of the different media
advertising on selling ratios. Then, the previous researches in the effects of media internationalization
to people will be studied. The key objective of this study is to find which kind of media advertising is
more effective on sales. The result of the research shows that customers’ are more influenced by
internet advertisement followed by commercial advertising, TV and print advertisement. The findings
suggested some significant of implications which will help advertisers to create better local
advertisements and provides some solutions to prevent our values and cultures from being
undermined by foreign media programs.

Keywords: Media advertising, media internationalization, local media, Tv advertising,

printed advertising, internet advertising, selling ratios.

1. Introduction
1.1 Background of study

Advertising influences on human’s culture. In earliest period, Egyptians formed sales

letters in papyrus wall posters. Commercial messages have been found in the remains of
Pompeii. Indian rock-art paintings used Wall or rock for commercial advertising (Walker,
2009).
Modern advertising exists in the Industrial Revolution, such improvement made mass-
production achievable and manufacturers had to locate new markets and develop presented
ones to sustain benefits and manage over prices. That’s why, retailers and wholesalers had the
authority to make a decision which products were existed, therefore producers branded
supplies and advertised such brands to demand to the middle class customers who may
require that products (Bononad, 2008).
 Journal of Modern Marketing Research Vol.2 No.1, September 2013, 86-97

Although some specialist thought with Internet, demolition of customary mass media
(TV, radio and newspapers) would happen, it didn’t. Web and digital media have more
opportunity to grow and have more visitor than traditional ones. The combination of the new
information technologies and globalization, advance the growth of international advertising.
Advertising is one of the most important factors in our society and modern economy to
increase the sales of the company (Miller, 2012).
Clow and Baak (2007) stated that advertisements can be placed in any type of media;
printed, electronic or web. Miller (2012) suggested that in a single day consumers will see at
least 100 to 1000 advertisements from various sources.
Tellis (2009) reported that advertising could influence one’s thought, decision, preference
and also attitude. With such a great influence on the consumers, companies are willing to pay
large amount of money in order to get their advertisements placed in any of their preferred
media. Companies that produce or sell many types of products or provide services are most
likely to advertise more.
Juggler (2008) found that there are many ways to increase selling ratios. Usually, these
ways can present dramatic improvement of selling ratios. First one is Integrate Unique
Selling Proposition into everything that all companies need to do, take basic sales training to
the next level, Use social proof to firm’s advantage and Incorporate a Risk Reversal
component. Also Hicom (2012) identified that regional markets offer a logistical advantage
of proximity, as well as a familiarity of the range of products that Oregon produces. National
markets also offer producers of each product to reach larger segments and to grow sales.
As a result, the advertising will cost a lot for the companies. Advertising can build the
brand but consumers do not think about only one brand when they need products. Consumers
will look for product which has the best quality with sufficient price and better services.
Traditional mass media is soaked with advertising. Internet is now an important part of our
daily life, whether at work or at home. Therefore there is a change from mass media to the
new media of mass conversation. Media companies will always try to offer attractive
advertising packages. Nowadays advertising industry modifies the traditional media to
consist the digital media in order to attain more successful consultations.

1.2 Problem Statement

Companies use advertising to achieve different goals and objectives. The effects of
advertising on businesses are frequently purposeful. Companies can only attain positive
effects by planning their advertising budgets intelligently. Media advertisements can be
presented on television, internet, magazines and newspapers. Each kind of adverting has
some disadvantages. For example for TV advertising, the company hardly catch it’s exact
target market on television since there is no control over selected viewers and the time they
can watch. Also can increase product cost and it is not a great way for advertising. Print
advertising is so costly and it’s a kind of short term advertising and if the target audience is
adults between 18 to 24 age groups they rarely read newspaper or magazines. On the other
hand online advertising has some serious problems too. Because of millions of websites and
options, firms cannot be sure their online ads are even being watched by consumers. Also
security and privacy in online advertising are not trustworthy.

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Negative effects of media advertising on business cannot be ignored. Strategic shift,

reduced control, unpredictable schedules, bad publicity spreads, burden of the marketing
shift, increased customer power are some negative effects of advertising on business. Also
Negative Effects of False Advertising are including investigation, cease and desist orders,
financial loss and broken trust which are really harmful for companies. Because of all the
problems mentioned above, it’s really important to find out which type of media advertising
is most effective and efficient for each products category.

1.3 Objective

The main objective of this research is to explore the relationship between media
advertising and selling ratios.

1.4 Research Questions

The main questions addressed in this research are mentioned below:

RQ) is there any relationship between media advertising and selling ratios?
RQa) is there any relationship between online advertising and selling ratios?
RQb) is there any relationship between TV advertising and selling ratios?
RQc) is there any relationship between print advertising and selling ratios?

2. Literature Review
2.1Selling Ratios

Lim (2012) stated that Malaysia is the biggest automobile customer market in South-East
Asia. The Malaysian national automotive industry is not only one of the major industrial
sectors, but also represents a matter of national pride. To protect the local automotive
industry, the precise number of import restrictions was imposed on foreign vehicles. The
main objective of the automotive industry promotion in Malaysia is constituted the restriction
of imports, reducing expenses in foreign exchange, the creation of employment and the
development of the industrial sector. According to Hayko (2010) depends on views,
Advertising on national market can be harmful or beneficial on human and most be based on
fact because they can manipulate people’s strongest desires and greatest fears to convince
them buying the preferred products. The benefit of advertising to the company comes in to
play when the company is giving a presentation to the investors.
Juggler (2008) found that there are many ways to increase selling ratios. In this article,
these ways can give dramatic improvement of selling ratios. First one is Integrate Unique
Selling Proposition into everything that all companies need to do, take basic sales training to
the next level, Use social proof to firm’s advantage and Incorporate a Risk Reversal
component. Sissors and Baron (2010) mentioned that Regional and national markets are often
the logical "next step" for producers that have established good local markets but want to
grow. Also Hicom (2012) identified that regional markets offer a logistical advantage of
proximity, as well as a familiarity of the range of products that Oregon produces. Moving
into national markets offers larger population centers and the efficiencies related to the
economies of scale. National markets also offer producers of niche products to reach larger
segments and grow sales.

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Tellis (2009) suggested that the effect of advertising on sales is captured by a Statistic
called the coefficient. When the variables in the model are all measured as percentage
changes or transformed by taking the logarithm of their actual values, then the estimated
coefficient of advertising is elasticity. Advertising is not effective for always but sometimes
changes in creative, medium, target segment or product itself will lead to changes in sale. To
increase effectiveness, advertisers should modify content more than increasing weight or
frequency advertisers need to test and typically vary the content of their advertising with in
the life stage of the product. Thomas (2008) found that some barriers such as lack of strategy,
client ineptness, poor copy testing by research companies, also sophisticated marketing mix
modeling is one way to measure these advertising effects on sales. Testing advertisement is
really important and can use results as a guide. Ads are built on emotions and feelings,
deadlines, can’t test imagery with standard advertising testing techniques.
Hazel (2007) suggested that Malaysia government used high tariff to protect its domestic
automakers to control the majority of the local market. Recently the tax deductions and cash
rebates for the individuals on purchasing first new national cars are no longer in practice; it
shows that the impact of the local demand on national car has been declined. According to
Hazel (2006) the most important factor that impact on expansion of national car industry in
Malaysia is lead into an industrial nation. They need to growth of local mechanism and
stimulates the plastics, rubber, aluminum and metal industries. To support national car project
Malaysian government maintains several measures including high tariffs and an import quota
on import vehicles. There are some factors affecting the demand for national car such as
product, place, promotion, price and the theory of the strategies. Managers should pay
attention to the quality of product as a goods or services and implement the high service
performance to create value for customers.
Erdem and Sun (2002) found that a parsimonious and new way of capturing the utility
variance-shifting role of use experience and advertising is to allow the initial utility variance,
which we set to unity, to be updated conditional on past purchases. Neither advertising's
impact on the consumer utility mean nor its impact on the consumer utility variance across
categories for product brands has been empirically verified in previous work.

2.2 Media Advertising

Cruzat (2012) found that There are numerous factors play roles in determining whether
advertisement travel well or poorly. Marketers need to test multiple markets to get a full
understanding of an ad’s likely effectiveness, but it becomes equally imperative to understand
what it takes to beat the odds and create a truly Creative Advertising. The combination of
creativity and the characteristics of ads that travelled well are, Children, Celebrities, Music,
Humor and Emotions.
Magnaglobal (2011) recognized that TV advertising forecast in the globe will be stable
around 12%. Internet advertising forecast will be stable around 10%. Print advertising
forecast will be stable around 7%. Radio advertising forecast will increase from 3% to 5%.
Out-Of-Home advertising forecast will be stable around 8%.cinema advertising forecast will
sharply decrease from 20% to 12% but other out of home advertising forecast will be stable.
Haque, Rahman, Yasmin and Asri (2009) analyzed advertisers in future: such as managerial

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recommendation and marketing recommendation. Managerial implication can help customers

to increase their interest for towards products. Marketers can design messages of which
means of communication their regular customer prefers such as print production, commercial
ads, internet ads. It will inform marketers what sort of communication Malaysian people
prefer. After marketers analyze the best communication, they should create budgets to cut
cost but gain profits (↓Cost, ↑profits). Hamid (2010) stated that the internationalization of the
media advertising is part and parcel of developing process in many developing countries like
Malaysia. But the process of internationalization owes a great deal to the advent of local
values and cultures. Malaysians still retain their eastern culture and adopt other cultures at the
same time. Nevertheless, to protect our local values and cultures, more control and
monitoring the local media programs is required.
Shaver and Lacy (2010) conclude that media advertising is monopolistically competitive,
some media are better at some types of advertising than others. The degree to which
advertising media are substitutes, depends on the objective match between relevant media
characteristics (e.g., demographics) and advertisers’ objectives and is mediated by
advertisers’ subjective preferences and knowledge (Silverman, 2012).
Hayko (2010) determined that sometimes there is a lie in the art of advertising. By
playing with emotions, advertisers can persuade consumers to buy a particular product.
Advertisement can do educate and bring awareness to the public on certain issues from
economic and business view advertising has positive effect on society.
According to Shafie (2009) the goal of any advertising is ultimately to initiate action for
monetary return. Type of advertising is changing for each generation. Traditional advertising
agencies have the most to lose in the transition to digital advertising, in Malaysia; traditional
media has changed to the emergent new media advertising. Also Shafie (2009) found that
Advertisers, either traditional or new media, need to adapt to the new wave of technology
revolution to remain competitive in their value chain with creativity. Online Advertising is
promising more revenues for web publishers.
Thomas (2008) mentioned that to judge the effectiveness of an ad, many different
variables must be measured and considered simultaneously. It can be effective if they have a
healthy competition based on facts, not wishful thinking and self-delusion with perfect
measuring tools and decrease barriers and enhance creativity and widespread belief. Galander
(2008) defined advertising as any form of non-personal presentation and promotion of ideas,
goods or services by an identified sponsor. Advertising is the one that most art has. Two
major factors in our current economies are globalization and the new communications and
media. Planning is a key factor for successful advertising. One thing we must always do is act
ethically. Advertising has been largely criticized as a manipulative tool. Galander (2008) also
found some factors that can effect on quality of advertising such as culture, globalization and
the new communications and media, language, needs and values, religion and moral,
Customs and consumption patterns, political and legal environment, self regulation, social
responsibility and creativity in advertising.
Shimp (2007) defined internationalization of the media as the process by which the
ownership, structure, production, distribution, or the content of a country’s media is
influenced by foreign media interests, culture and markets. The terms culture refers to

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process, but it can also refer to some shared attribute of a human group such as physical
environment, tools, religions, customs and practices, or their entire life style (Yoon, 1998).

2.3 Online advertising

Miller (2012) presented some of the implications that online advertising is a best way
because it has different types with different technologies and recently has enhanced a lot and
people encourage using network more than before. Creativity can make a huge difference.
According to Gibs (2010), buying social media is different than buying standard online
media. It’s critical that we understand advertising not just in terms of paid media, but also in
terms of how earned media and social support contribute to campaigns.
William (2010) as quoted by Alreck and Settle (2009) stated women have more positive
attitude than men towards catalogue and retail shopping but this gender difference disappears
in the case of online shopping. This means that internet advertising is more effective for
women than men because women purchase more products compared to men. Moreover, an
online advertising has become more effective between the years 2005-2009 (Media guide,
2012). The best performing online advertising media concerning are videos and banner
advertisement. The internet advertising does not only need good content but it also needs to
be circulated in areas which are commonly visited by customers and well visited by potential
ones.
Gibs (2010) stated that Neilson Company made a major investment in helping advertisers
understand how to achieve their brand goals in a social context. Also their result shows that
online advertising is more effective than the others in both online shopping and shopping
stores. Barroso and Liobet (2011) identified that internet advertising is a powerful tool of
technology where by many advertisers attract consumers. Entertainment and likeability are
also effective in advertising, which influences the mentality of customers.
Evans (2008) mentioned that advertisers and publishers do not engage in much more
targeting than do traditional media. Intermediation is the most critical activity performed by
ad platforms. This involves two functions. First is about matching the supply and demand of
advertising inventory. In practice that means connecting an advertiser that wants to reach a
user with a particular profile (detected through contextual or non-contextual targeting) with
inventory on publisher web sites that match that profile. Second is establishing transaction
prices for the advertising inventory.
According to Richard (2008) advertising intensity increases in time, especially in longer
term, when society becomes more complex and new advertising media become available. The
pattern of economic support for mass communication is approximately constant relative to
the general economy. Stuart (2008) found that online media categories include portals,
content, search engines, social media, video, blogs, email and newsletters, ecommerce, RSS,
ad networks. Types of online advertising are the network and different options. Creativity is
the most important factor to achieve success.

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2.4 TV Advertising

According to Rahim and osman (2012) Malaysian television commercials have adopted
mostly the local cultural identities in their advertising creative executions. Globalization is
already being used in advertising creative executions in Malaysia, pertaining to culture
influences. Malaysian advertisers have used localization, globalization strategies in their
global branding and advertising. It is important for advertising practitioners to be cautious
about cultural, social, religious systems ad national identity underpinnings, which influence
on advertising. Hamid (2010) mentioned that advertisers should try to produce more local TV
programs and film to hold their culture especially between younger generations. Also they
can produce their local advertisement for international brand with local actors by using
eastern culture. Rahman (2007) suggested that there are several types of Islamic concepts that
advertisers should follow to create great TV commercial advertising. They must have good
intention and should be honest in advertising-pros and cons of the products. They need to
avoid cheating and have to advertise products which are not harmful to others. They cannot
contain anything forbidden and should not be so expensive that the consumer can afford the
cost of the advertisement. Rahim and Osman (2012) suggested that Malaysian commercials
are adapting the local consumer culture positioning and the global consumer culture
positioning rather than the foreign consumer culture positioning, in the advertising strategies.
Futurescape (2011) mentioned that significant numbers of TV viewers are simultaneously
online while watching television, many of them using a laptop. Given the popularity of social
networks, this two-screen activity means people are talking about TV shows at the same time
they are watching them. Basri and Ahmad (2011) mentioned that national television needs to
cope with the changes in the age of global media. The focus group discussions have
highlighted how programs aired on national television are seen as unappealing and lagging
behind in many aspects. Still, the respondents were able to identify and relate with some
signature programs. Therefore the challenge is to rebrand these signature programs so that it
would be seen as more modern and attractive, yet maintaining the niche market as its key
selling point.
Majid (2010) found that local TV news Web sites perform relative to other news and
information Web sites on attributes relevant to advertisers. Therefore, TV advertising is the
most effective advertising in a world. Bruce (2009) found that In general, radio and television
advertising are useful for reaching broad segments of the population in a short amount of
time with a simple message. Web advertising may be another potential “piece” of the mass
media campaign buy worth evaluating, especially in conjunction with radio and television
buys – media outlets is increasingly using their websites to link communities with advertisers
and information. In general, media planners should plan a strategy that helps to link the target
audience to information and resources; they may need to change their behaviors.
Patsula (2007) found that television is often called “king” of the advertising media, since
a majority of people spend more hours watching TV per day than any other media. It
combines the use of sight, color, sound and motion and it works. The TV has proven its
persuasive power in influencing human behavior frequently but it’s also the king of
advertising costs.

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2.5 Print Advertising

Dominic (2011) found that in media advertising, the task of the advertiser is to develop a
definite understanding of the market for their product. Advertising budget is not large enough
to allow year-round advertising. The important factor can be defined as the qualitative value
of an exposure or effect through a given media to the customers based on the placement of
the advertisement in a newspaper.
According to Savita and Emelia (2011), important factors such as cost, reach, frequency
and target audience play important roles in selecting the best newspaper as the preferred
advertisement vehicle. The study on internet advertising could be future research as the
option for the companies to place their advertisements. The newspapers with the most
number of readerships will have a strong demand for advertisements. Sissors (2011) stated
that print media spreads more widely, fast flowing information to people than electronic
media. These opportunities can give higher effectiveness to influence people because they
can get print media anywhere and it also flows faster than other advertisings. The print media
is known not only to play an effective role to inform people but also in making people to
think and shape people’s attitudes.
Swain (2008) found that the newspaper industry in general has been experiencing losses
over the past few years. One group that newspapers are worrying about is real estate
advertisers. Real estate advertising is an $11 billion business annually, and newspapers have
historically enjoyed a significant portion of real estate advertising. As more consumers turn to
online real estate shopping, a number of companies are reducing their newspaper advertising
costs and directing it to online advertising.
Richard, Bakker and Picard (2010) suggested that Newspapers are in particular affected
by economic downturns because of retail and classified advertising. Magazines suffer
strongly from recessions. Television in contrast is used by major companies to advertise their
key brands to the large population. The degree for substitution of advertising media depends
on the objective match between relevant media characteristics and advertisers’ objectives.
Kee and Hassan (2006) found that the print media can be considered as one of the most
flourishing industries compare to other devices. The different types of print media provide
options for people to use advertisements.
Jonas and Sten (2010) emphasized that Newspaper companies definitely can generate
profit out of this endeavor. Newspapers with higher number of readership will charge more
for their advertising space, yet more companies would still request for their advertising
service. Bruneau (2010) also found some other advantages to advertisers using print media.
He found that different types of print media have a loyal readership, Targeting a particular
geographical area is easy by using print media. Rahman (2009) mentioned by using all kind
of advertising technique such as print media, commercial advertising, internet advertising,
likability and entertainment, they check which one is more effective. But Malaysian people
are not open for all techniques. Some of them still not use internet, so internet advertising is
not use full for all groups of people in society.
Consterdine (2005) explained that many advertisers using print media published their
advertisements to attract customers through magazines, newspapers, point-of-purchase and
more. Technology changes constantly thus the advertiser may use this as an advantage by

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forecasting commercial advertising on television and radio to attract people. Gluck and
Bruner (2005) mentioned that among the entire advertising media in Malaysia (television,
newspapers, point-of sale, internet, magazines etc.), newspapers have become the main
contributor to the growth of the advertising market in the country, with shares of 54 percent
and with a growth of 8.3 percent.
Picard (2008) emphasized that one reason for the long-term decline of newspapers as
advertising medium Proposed is the growth of Internet advertising. Television is the most
important advertising medium, and magazines and outdoor advertising are relatively
important too. Selma (2003) also found that print media such as newspapers or magazines
delivers better advertising because a copy of print media advertising uses more than two
people to receive information and gets in anywhere.

3. Methodology

This paper is a review paper and will explore the relationship between different media
advertising and selling ratios. The key objective of this study is to find which kind of media
advertising is more significantly related with selling ratios. According to literature review,
it’s obvious there are several types of media advertising which effect on consumer behavior.
Due to that, the following hypotheses have been developed:

RH: there is significant relationship between media advertising and selling ratios.
RHa: there is significant relationship between online advertising and selling ratios.
RHb: there is a significant relationship between TV advertising and selling ratios.
RHc: there is a significant relationship between print advertising and selling ratios.

3.1 Operational Definitions

Selling ratio is the ratio of the quantity of goods sold by a retail outlet to the quantity
distributed to it wholesale. In another way Selling ratio is An indicator of small-
investor response, equal to the amount of odd lot buying divided by the amount of odd
lot selling over a given time period.
Online advertising is a form of promotion that uses the Internet and World Wide Web for
he expressed purpose of delivering marketing. Online advertising is using of internet as an
advertising medium where promotional messages appear on a computer screen. Since the
contact software (browser) reveals sufficient information about the site's visitors online
advertising can be custom-tailored to match user preferences.
A television advertisement or television commercial (often just commercial or advert) is a
period of television programming produced and rewarded for by an organization that conveys
a message. Advertisement revenue provides a considerable portion of the funding for most
private owned television networks. The mass television advertisements today consist of brief
advertising spots, ranging in length from a few seconds to several minutes (as well as
program-length infomercials).
Print advertising is advertising in newspapers, magazines, catalogs, or mailers. Usually, if
an advertisement is printed on paper, newspapers, magazines, newsletters, booklets, flyers,

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direct mail, or anything else that would be considered a portable printed medium, then it
comes under the banner of printed advertising.

4. Conclusion, policy implications and further studies

According to Cruzat (2012), Silverman (2012), Magnaglobal (2011), Hamid (2010),

Shaver and Lacy (2010), Hayko (2010), Tellis (2009), Shafie (2009), Thomas (2008),
Galandar (2008), Shimp (2007), Erdem and Sun (2002) and Yoon (1998) can conclude that
there is significant relationship between media advertising and selling ratios. Advertising on
selling ratios must be based on fact because they can operate people’s strongest desires and
greatest fears to encourage them to buy the preferred products.
According to Miller (2012), Media guide (2012), Barroso and Liobet (2011), Gibs (2010),
William (2010), Alreck and settle (2009), Evans (2008), Richard (2008) and Stuart (2008)
can conclude that there is significant relationship between online advertising and selling
ratios. Online Advertising is promising more revenues for web publishers. Because of
different types with different knowledge, this is the most authoritative tool of technology
whereby many advertisers attracts consumers and has enhanced a lot lately.
According to Rahim and osman (2012), Basri and Ahmad (2011), Futurescape (2011),
Hamid (2010), Majid (2010), Bruce (2009), Rahman (2007) and Patsula (2007) can conclude
that there is significant relationship between TV advertising and selling ratios. The vast
majority of people spend more hours watching TV per day than paying attention to any other
medium but the forecast of TV advertising is stable. Significant numbers of TV viewers are
simultaneously online while watching television, many of them using laptops.
According to Dominic (2011), Savita and Emelia (2011), Sissors (2011), Richard, Bakker
and Picard (2010), Jonas and Sten (2010), Bruneau (2010), Rahman (2009), Swain (2008),
Picard (2008), Kee and Hassan (2006), Consterdine (2005), Gluck and Bruner (2005) and
Selma (2003) can conclude that there is significant relationship between print advertising and
selling ratios. The different types of print advertising with the most number of readerships
will have a strong demand for advertisements. One reason for the long-term decline of print
advertising is the growth of Internet advertising.
The goal of any advertising is ultimately to start action for monetary return. Sometimes
changes in creativity, medium, target segment or product itself will lead to changes in sales.
Methods of advertising are changing in each era. Traditional advertising agencies are more in
danger to lose in the transition to digital advertising. Internationalization of the media
advertising is part of a developing process in many developing countries. Advertisers need to
adapt to the new wave of technology revolution to stay competitive in their value chain.
Creativity in advertising can make a huge distinction. The degree to which advertising media
substitutes, depends on the objective match between relevant media characteristics and
advertisers’ objectives.
I recommend for future research to investigate further on variables affecting selling ratios.

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